Loan loss provisions and audit quality: Evidence from MENA Islamic and conventional banks

Salem, Rami Ibrahim A.; Usman, Muhammad; Ezeani, Ernest

doi:10.1016/j.qref.2020.07.002

Cited by 57 publications

(84 citation statements)

References 112 publications

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“…We also control for the market systematic risk ( Beta ), the natural logarithm of the total assets representing the firm size (log Size ) and firm growth‐related risk book‐to‐market ratio ( B2M ) following Botosan and Plumlee (2002) and Botosan and Plumlee (2013). Additionally, the financial leverage measured by the total debt to total assets ( Leverage ) and the firm profitability ( ROA ) is controlled for, following previous studies (Gebhardt, Lee, & Swaminathan, 2001; Salem, Usman, & Ezeani, 2020). A binary variable ( High _ analyst ) representing high analyst coverage is used to control for the quality of the informational environment (Botosan & Plumlee, 2005; Botosan, Plumlee, & Wen, 2011; Gode & Mohanram, 2001).…”

Section: Methodsmentioning

confidence: 99%

Mandatory disclosure, greenhouse gas emissions and the cost of equity capital: UK evidence of a U‐shaped relationship

2020

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This paper examines the effects of disclosing greenhouse gas (GHG) information mandatorily on the cost of equity capital (COC) using a longitudinal unbalanced panel database of the United Kingdom's FTSE 350 firms for the period 2011–2016. We use a nonlinear panel quantile regression (PQR) model to examine the relationship between GHG disclosure (GHGD) and COC in the United Kingdom. This technique was supplemented by conducting a two‐step generalised method of moment (GMM) estimation to address any concerns related to the potential existence of endogeneity problems. Our findings suggest that high‐level GHGD appeared to be negatively associated with COC up to a certain level, which is known as the turning point; then, any increase in GHGD is likely to increase the COC. This means that the nonlinear association between GHGD and COC is evidenced in our study and takes a U shape. Likewise, our findings are associative of a moderating effect of the 2013 carbon disclosure regulation (CDR) on the GHGD–COC nexus. We argue that mandatory GHGD and GHG risk are linked so that those companies that are associated with higher GHG risk have a tendency to be better disclosers. Consequently, we urge regulators to design GHGD regulations in a way that mirrors corporate environmental risk and leads to a lower COC in order to align the interests of corporations with those of the society at large.

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Section: Methodsmentioning

confidence: 99%

Mandatory disclosure, greenhouse gas emissions and the cost of equity capital: UK evidence of a U‐shaped relationship

2020

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“…However, the detrimental impact of corruption on bank stability appears to be weaker for Islamic banks ( + ) compared to conventional banks ( ), in Panel B. This could be due to the role of the SSB which to some extent is expected to mitigate unethical behavior (Abdelsalam et al, 2016;Alsaadi et al, 2017;Salem et al, 2021). The results confirm such a conjecture when interacting SSB size (SSBSZ) with the corruption index which…”

Section: Main Findingsmentioning

confidence: 52%

Corruption and bank risk-taking: The deterring role of Shari’ah supervision

et al. 2021

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This paper investigates whether the risk-taking of Islamic banks is differently affected by corruption compared to conventional banks. Indeed, the presence of Shari'ah supervisory boards (SSBs), as a cornerstone of Islamic banking, is expected to deter the influence of corruption on risk-taking for Islamic banks. We consider a matched sample of 70 Islamic and conventional banks operating in 10 OIC (Organization of Islamic Cooperation) countries over the 2012-2017 period.We find consistent evidence that higher levels of corruption are associated with higher bank risk for both conventional and Islamic banks. However, this association is stronger for conventional banks. Furthermore, for Islamic banks, the impact of corruption on risk-taking is significantly reduced with higher representation of females in Shari'ah supervisory boards and higher academic qualifications of board members. The role played by such board members in mitigating the impact of corruption on risk-taking is more effective for Islamic banks than for conventional banks.

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“…Stream 3 investigates the role of auditors (Abdel Karim, 1990; Salem et al , 2020; Fakhfakh, 2020), accounting and social reporting in Islamic financial institutions (Abdel Karim, 1995; Archer et al , 1998; Kamla, 2009; Maali et al , 2006; Kamla and Rammal, 2013; Abdel Karim, 2001), ethical report and identity (Belal et al , 2015; Haniffa and Hudaib, 2007) and disclosure of corporate social responsibility practices within the context of accounting framework (Farook et al , 2011; Hassan and Harahap, 2010; Mallin et al , 2014; Platonova et al , 2018; Abdul Raman and Bukair, 2013).…”

Section: Resultsmentioning

confidence: 99%

Influential and intellectual structure of Islamic finance: a bibliometric review

Alshater

Hassan

Khan

et al. 2020

IMEFM

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Purpose Islamic finance is an alternative approach of financial intermediation based on risk-sharing and asset-backed operations, which evolved substantially in recent years in academic research raising the need for quantitative studies to address the intellectual development and scientific performance of this field. This study aims to provide quantitative statistics and comprehensive review of the key influential and intellectual structure of Islamic finance literature. Design/methodology/approach The authors apply the trending and cutting-edge quali-quantitative approach of bibliometric citation analysis. This study reviews 1,940 English studies and review papers published in scientific journals indexed by the Scopus database from 1983 to 2019. RStudio, VOSviewer and Excel’s software are used to analyze the collected data and apply the bibliometric tests. Findings The results identify the leading academic authors, journals, institutions and countries with relation to Islamic finance. The authors also propose six main research themes in this field, which are as follows: Islamic finance – fundamentals, growth and legitimacy; customer’s attitude and perception toward Islamic finance; accounting and social reporting of Islamic finance; performance and risk management of Islamic finance; Islamic financial markets; and efficiency of Islamic financial institutions. Lastly, the authors identify research gaps in the existing Islamic finance literature and present 24 future research directions. Research limitations/implications The data in this study is confined only to the Scopus database of English papers and reviews. It also considers papers directly related to the field of Islamic finance. Originality/value To the best of the authors’ knowledge, this paper is one of the first to address the literature of Islamic finance from a bibliometric aspect. The results of this study along with future research questions will help researchers and practitioners to further explore and stand on firm quantitative bases regarding the scientific development of Islamic finance.

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Loan loss provisions and audit quality: Evidence from MENA Islamic and conventional banks

Cited by 57 publications

References 112 publications

Mandatory disclosure, greenhouse gas emissions and the cost of equity capital: UK evidence of a U‐shaped relationship

Mandatory disclosure, greenhouse gas emissions and the cost of equity capital: UK evidence of a U‐shaped relationship

Corruption and bank risk-taking: The deterring role of Shari’ah supervision

Influential and intellectual structure of Islamic finance: a bibliometric review

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